Traders said prices fell after an American Petroleum Institute (API) report late on Tuesday that showed a 9.2 million barrel rise in gasoline stocks in the week ended Dec. 1, and an increase of 4.3 million barrels in distillate inventories, which include motor diesel and heating oil.

The perception that the higher fuel stocks pointed to weak demand outweighed a drop in crude inventories by 5.5 million barrels, to 451.8 million, traders said.

Outside the United States, analysts said supply cuts by the Organization of the Petroleum Exporting Countries (OPEC), Russia and other producers — which last week were extended to all of next year — have helped lift Brent prices by more than 40 percent since June, and more than 130 percent since early 2016, when they hit their lowest level since 2003.

With the supply cuts likely in place throughout 2018, analysts said crude prices were well supported.

“Robust global demand and tight supplies should see Brent crude oil rise to $70 per barrel by mid-year (2018),” said Bank of America Merrill Lynch in its 2018 outlook.

One factor that could undermine OPEC’s and Russia’s effort to cut supplies and prop up prices is U.S. oil production, which has risen by 15 percent since mid-2016 to 9.68 million barrels per day, close to levels of top producers Russia and Saudi Arabia.

But weaker economic performance and a decline in refinery capacity utilisation in the first quarter could be a drag on oil demand and dampen prices, said Georgi Slavov, head of research at commodity broker Marex Spectron.

“Demand remains firm, which is the main reason for us to still see oil at/above $60 per barrel. This is likely to change as we approach 2018,” Slavov said in a note.

“We are starting to pick up weakness in the macro performance of key oil consuming regions. We are also starting to take note of the forthcoming January-February decline in refinery capacity utilisation,” he said.